I took out a $5,000 Check n Go loan last year. I have to pay back $998.00 every month. At that time, I was able to do that when I agreed to the terms of the loan. Now, I have run into a financial hardship and I’m not able to pay that amount. I called this morning and asked for an EPP and they told me that they couldn’t do that on an installment loan. I don’t know what to do.

What are my options if Check n Go doesn’t work with me?

Gene”

Dear Gene,

I’m not sure which state you are in, but let’s say it’s Alabama.

In Alabama it looks like the maximum payday loan is $500, for installment loans they say they go to $3,000 if done online. I suspect your loan might have been through your local store and is classified as an installment loan.

According to the Check ‘n Go website, the maximum term they will go on an installment loan is 12 months. So at your rate of $998 per month you will repay $11,976 on a $5,000 loan.

I’d like to know what interest rate they charged you. You’d have to look at your original loan documentation.

In Alabama it appears they offer the EPP for payday loans but not for installment loans. – Source, Source

Ultimately, unless the interest rate they charged you was illegal or they committed some other violation that might help you to negotiate an affordable payment plan, we might have to look at other options to deal with the debt.

How many payments did you make and do you have other debt you owe?

Please post your responses and follow-up messages to me on this in the comments section below.